INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
9th Edition
ISBN: 9781260216141
Author: SPICELAND
Publisher: MCG CUSTOM
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Textbook Question
Chapter 8, Problem 8.13P
Dollar-value LIFO
• LO8–8
On January 1, 2018, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $400,000. Inventory data for 2018 through 2020 are as follows:
| Date | Ending Inventory at Year-End Costs | Cost Index |
| 12/31/2018 | $441,000 | 1.05 |
| 12/31/2019 | 487,200 | 1.12 |
| 12/31/2020 | 510,000 | 1.20 |
Required:
Calculate Taylor’s ending inventory for 2018, 2019, and 2020.
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P 8-14 Dollar-value LIFO
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to convert ending inventory to base year. The company began operations on January 1, 2018, with an inventory
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Year Ended
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2019
2020
2021
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245,700
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1.08
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Problem 8-15 (Algo) Dollar-value LIFO [LOB-8]
On January 1, 2024, a company adopted the dollar-value LIFO inventory method. The inventory value for its one inventory pool on this
date was $270,000. An internally generated cost index is used to convert ending inventory to bese year. Year-end Inventories at year-
end costs and cost indexes for its one inventory pool were as follows:
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December 31
2024
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2026
Inventory Year- Cost Index (Relative
End Costs
$354,640
365,040
413,110
141,840
to Base Year)
1.04
1.08
1.09
Required:
Calculate inventory amounts at the end of each year
Note: Round intermediate calculations and final answers to the nearest whole dollars.
Date
Inventory Layers Converted to Base Year
Cost
Inventory at Year-End
Inventory
Cost
Index
Layers at Base
Year Cost
Year-End
Cost
01012024
12/31/2024
12012025
12012026
Inventory Layers Converted to Cost
Inventory DVL
Cost
Inventory
Layers at
Year-
Inventory
End
Cost
Layers
Converted to
Cost
Index
Cost
Base
2024
Base…
Problem 8-13 (Algo) Dollar-value LIFO [LO8-8]
On January 1, 2024, a company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was
$390,000. Inventory data for 2024 through 2026 are as follows:
Date
12/31/2024
12/31/2025
12/31/2026
Date
Required:
Calculate the company's ending inventory for 2024, 2025, and 2026,
01/01/2024
12/31/2024
12/31/2025
Ending Inventory at
Year-End Costs
$ 430,500
484,500
510,450
12/31/2026
Cost Index
1.05
1.14
1.23
Inventory Layers Converted to Base Year Cost
Inventory
Layers at
Base Year
Cost
Inventory at
Year-End
Cost
Year-End
Cost
Index
M
T
a
W
Base
Base
2024
Base
2024
2025
Base
2024
2025
2026
Inventory Layers Converted to Cost
Year-End
Cost
Index
Inventory
Layers at Base
Year Cost
-
M
"
.
Inventory
Layers
Converted to
Cost
Inventory DVL
Cost
$
$
$
$
0
0
0
0
Chapter 8 Solutions
INTERMEDIATE ACCOUNTING(LL)-W/CONNECT
Ch. 8 - Describe the three types of inventory of a...Ch. 8 - What is the main difference between a perpetual...Ch. 8 - The Cloud Company employs a perpetual inventory...Ch. 8 - The Bockner Company shipped merchandise to Laetner...Ch. 8 - What is a consignment arrangement? Explain the...Ch. 8 - Prob. 8.6QCh. 8 - The Esquire Company employs a periodic inventory...Ch. 8 - Prob. 8.8QCh. 8 - Its common in the electronics industry for unit...Ch. 8 - Explain why proponents of LIFO argue that it...
Ch. 8 - Prob. 8.11QCh. 8 - Describe the ratios used by financial analysts to...Ch. 8 - Prob. 8.13QCh. 8 - Prob. 8.14QCh. 8 - The Austin Company uses the dollar-value LIFO...Ch. 8 - Identify any differences between U.S. GAAP and...Ch. 8 - Determining ending inventory; periodic system ...Ch. 8 - Prob. 8.2BECh. 8 - Prob. 8.3BECh. 8 - Purchas e discounts; gross method LO83 On...Ch. 8 - Prob. 8.5BECh. 8 - Prob. 8.6BECh. 8 - Inventor y cost flow methods; perpetual system ...Ch. 8 - LIFO method LO84 Esquire Inc. uses the LIFO...Ch. 8 - LIFO method LO84 AAA Hardware uses the LIFO...Ch. 8 - LIFO liquidation LO86 Refer to the situation...Ch. 8 - Prob. 8.11BECh. 8 - Ratio analysis LO87 Selected financial statement...Ch. 8 - Dollar-value LIFO LO88 At the beginning of 2018,...Ch. 8 - Perpetual inventory system; journal entries LO81...Ch. 8 - Prob. 8.2ECh. 8 - Determining cost of goods sold; periodic inventory...Ch. 8 - Perpetual and periodic inventory systems compared ...Ch. 8 - Prob. 8.6ECh. 8 - Goods in transit; consignment LO82 The December...Ch. 8 - Physical quantities and costs included in...Ch. 8 - Prob. 8.9ECh. 8 - Prob. 8.10ECh. 8 - Prob. 8.11ECh. 8 - FASB codification research LO82, LO83 Access the...Ch. 8 - Inventory cost flow methods; periodic system ...Ch. 8 - Inventory cost flow methods; perpetual system ...Ch. 8 - Comparison of FIFO and LIFO; periodic system ...Ch. 8 - Average cost method; periodic and perpetual...Ch. 8 - FIFO, LIFO, and average cost methods LO81, LO84...Ch. 8 - Supplemental LIFO disclosures; LIFO reserve; AEP...Ch. 8 - LIFO liquidation LO81, LO84, LO86 The Reuschel...Ch. 8 - Dollar-value LIFO LO88 On January 1, 2018, the...Ch. 8 - Dollar-value LIFO LO88 Mercury Company has only...Ch. 8 - Dollar-value LIFO LO88 Carswell Electronics...Ch. 8 - Concepts; terminology LO81 through LO85 Listed...Ch. 8 - Various inventory transactions; journal entries ...Ch. 8 - Prob. 8.2PCh. 8 - Prob. 8.4PCh. 8 - Various inventory costing methods LO81, LO84...Ch. 8 - Various inventory costing methods LO81, LO84...Ch. 8 - Supple mental LIFO disclosures; Caterpillar LO84,...Ch. 8 - LIFO liquidation LO84, LO86 Taylor Corporation...Ch. 8 - LIFO liquidation LO84, LO86 Cansela Corporation...Ch. 8 - Prob. 8.11PCh. 8 - Integrating problem; inventories and accounts...Ch. 8 - Dollar-value LIFO LO88 On January 1, 2018, the...Ch. 8 - Dollar-value LIFO LO88 Kingston Company uses the...Ch. 8 - Dollar-value LIFO LO88 On January 1, 2018,...Ch. 8 - Prob. 8.1BYPCh. 8 - Real World Case 82 Physical quantities and costs...Ch. 8 - Judgment Case 83 The specific identification...Ch. 8 - Prob. 8.4BYPCh. 8 - Prob. 8.5BYPCh. 8 - Judgment Case 86 Goods in transit LO82 At the end...Ch. 8 - Ethics Case 87 Profit manipulation LO84 In 2017...Ch. 8 - Real World Case 88 Effects of inventory valuation...Ch. 8 - Real World Case 89 Effects of inventory valuation...Ch. 8 - Communication Case 810 Dollar-value LIFO method ...Ch. 8 - Prob. 8.11BYPCh. 8 - Prob. 8.CCTCCh. 8 - Prob. CCIFRS
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